When perfectly competitive firms earn short-run economic profits, all of these happen EXCEPT
A) market supply increases.
B) market prices fall.
C) firms are attracted to the industry by the profits.
D) the number of firms in the industry will fall.
Correct Answer:
Verified
Q162: (Figure: Unicycle Production Costs) In the long
Q163: (Figure: Unicycle Production Costs) What is the
Q164: (Figure: Unicycle Production Costs) If the price
Q165: (Figure: Unicycle Production Costs) If the market
Q166: The cotton industry is experiencing less than
Q168: When new firms enter a perfectly competitive
Q169: If a perfectly competitive firm earns zero
Q170: Jack earns normal profit by selling firewood
Q171: In a perfectly competitive industry, long-run economic
Q172: In the long run, perfectly competitive firms
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents